TL;DR
Identity is now the primary attack surface, and most Australian SMBs can dramatically reduce their risk with a focused week of work: enforce phishing-resistant MFA across every login, consolidate access through SSO, purge dormant accounts, and adopt zero trust verification principles. Budget $5–$10 per user per month for the full stack, and expect the biggest security uplift you'll get for that money.
Why Identity Is Your #1 Risk Right Now
Your perimeter is gone. Staff log in from home networks, personal devices, and coffee shop Wi-Fi. Attackers know this, and credential-based attacks — phishing, password spraying, session hijacking — account for the majority of breaches targeting Australian organisations. The Australian Signals Directorate (ASD) lists Multi-Factor Authentication as a standalone control in the Essential Eight precisely because it stops the largest class of attacks dead.
The good news: identity security is also the highest-leverage investment you can make. Unlike endpoint detection or network segmentation (expensive, slow to deploy), MFA and SSO deliver an immediate, measurable reduction in attack surface for minimal cost and effort.
Step 1: Enforce Phishing-Resistant MFA (Days 1–2)
Not all MFA is equal. SMS-based codes are vulnerable to SIM-swap attacks and are explicitly discouraged by NIST SP 800-63-3 for high-assurance scenarios. What you want is phishing-resistant MFA — methods that cryptographically bind authentication to a legitimate origin so a phishing site simply cannot capture the credential.
What to deploy:
- FIDO2 hardware keys (YubiKey 5 Series): ~$55–$75 per key, one-time cost per user. Gold standard. Works with Microsoft Entra ID, Google Workspace, Okta, and most SSO providers. Issue one primary and one backup key per user.
- Passkeys (platform authenticators): Apple Touch ID, Windows Hello, Google Passkeys. Free, built into devices users already carry, and fully phishing-resistant. Use these as the primary method for most staff.
- Authenticator apps (TOTP): Microsoft Authenticator, Google Authenticator, Authy. Better than SMS but still phishable via real-time adversary-in-the-middle proxies. Acceptable as a transitional method, not an end state.
Concrete action: In Microsoft Entra ID, navigate to Security > Conditional Access > Create new policy. Target "All users," set cloud apps to "All cloud apps," and under Grant, select "Require multifactor authentication" with "Require password change" disabled. For phishing resistance, add the policy "Require authentication strength" and select "Phishing-resistant MFA." This restricts login to FIDO2 and passkey methods only.
Cost: Microsoft Entra ID P1 is $8.60 AUD per user/month (includes Conditional Access). YubiKeys are a one-time ~$65 each. Google Workspace includes passkey support at no additional cost.
Step 2: Deploy Single Sign-On (Days 2–4)
If your staff are entering passwords into a dozen different applications, you have two problems: password fatigue leads to reuse, and you have no central point to enforce access policy or revoke access when someone leaves.
SSO consolidation options:
- Microsoft Entra ID: Native if you're on Microsoft 365. Supports SAML and OIDC for ~thousands of third-party apps. Conditional Access policies apply across every connected application.
- Google Workspace SSO: Included in Google Workspace Business Standard ($16.40 AUD/user/month). Simple setup for Google-native environments.
- Okta Workforce Identity: $3–$10 USD per user/month depending on tier. Strongest app catalogue and provisioning workflows if your stack is heterogeneous.
- Authentik (self-hosted): Open-source IAM and SSO. Free software, host it on a $10/month VPS. Ideal for technically capable teams who want full control without per-user licensing. Supports SAML, OIDC, LDAP, and SCIM provisioning.
Concrete action: Inventory every application your team uses (ask them — you'll be surprised). Prioritise SSO connections for email, file storage, your CRM, your finance system, and any application handling customer data. Aim to connect 80% of applications to your identity provider within the week. Legacy apps without SSO support can be proxied or stored in your password manager with auto-fill disabled.
Step 3: IAM Cleanup — Purge the Rot (Days 3–5)
Dormant accounts are silent vulnerabilities. A contractor who left eight months ago still has a valid email login. A service account with a password that hasn't been rotated since 2022. A shared mailbox that forwards to a domain you no longer own. Attackers love these because nobody monitors them.
Run this cleanup checklist:
- Export your user list from Entra ID / Google Workspace / Okta. Filter for accounts with no login activity in 30, 60, and 90 days.
- Disable before deleting. Disable accounts for 14 days first — this catches break-glass scenarios where an account looks dormant but is used for quarterly processes.
- Audit service accounts. These are non-human accounts (API integrations, backup scripts, sync tools). Each one should have documented ownership, scoped permissions (least privilege), and a credential rotation schedule.
- Remove local admin rights. Per ASD Essential Eight, restrict administrative privileges to dedicated admin accounts used only for admin tasks. Daily-driver accounts should have standard user rights. CIS Controls v8 Control 6 reinforces this as a benchmark requirement.
- Review external/guest access. B2B guest accounts in Entra ID or Google Workspace frequently accumulate without expiry. Set a 90-day inactivity policy to auto-revoke guests.
Tool: Microsoft Entra ID's "Sign-in logs" (Monitoring > Sign-ins) show last login per user. Export to CSV and sort by date. This takes 20 minutes for most SMBs and typically surfaces 5–15 zombie accounts.
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Get the Starter Pack →Step 4: Zero Trust Identity Verification (Days 4–5)
Zero trust isn't a product — it's the principle that no access request is trusted by default, regardless of network location. For identity specifically, this means every authentication is evaluated against current context: is the device managed? Is the location expected? Has this IP been seen before?
Implement these Conditional Access rules in Entra ID (or equivalent in Okta/Authentik):
- Block legacy authentication protocols (IMAP, POP3, SMTP basic auth) — these bypass MFA entirely and are the #1 entry point for password spray attacks.
- Require compliant or Entra-joined devices for access to admin portals and sensitive applications.
- Require MFA re-authentication when access originates from an unfamiliar location.
- Block access from countries where you have no business presence. For Australian businesses, this alone eliminates a large volume of automated attacks.
Step 5: Password Policy and Manager Rollout (Day 5)
Your password policy should align with NIST SP 800-63B: drop forced periodic resets (they encourage predictable patterns like "Summer2026!"), enforce minimum length of 12–16 characters, screen new passwords against known-breached lists, and allow all printable characters including spaces.
Deploy a password manager to eliminate password reuse entirely:
- 1Password Business: $10.78 AUD per user/month. Excellent UX, shared vaults, built-in breach monitoring, and Watchtower reporting on weak/duplicate passwords.
- Bitwarden Business: $4.90 AUD per user/month. Open-source, self-hostable, strong feature parity. Best value for budget-conscious teams.
The immediate win: conduct a "password audit" in your first week. Have every team member check their vault for duplicates and passwords shorter than 12 characters. Most teams find 30–60% reuse in the first pass.
Total cost for a 20-person team: Entra ID P1 ($172/month) + YubiKeys ($1,300 one-time) + Bitwarden Business ($98/month) = roughly $270/month ongoing, or ~$13.50/user/month including amortised keys. Drop the hardware keys and use passkeys only, and you're at the $5–$10/user/month target.
FAQ
Is SMS MFA better than nothing? Yes, marginally — but it's vulnerable to SIM-swap attacks and should be treated as a temporary stopgap, not an end state. Prioritise migrating everyone to passkeys or authenticator apps within the first month, and to FIDO2 hardware keys for admin and finance roles.
We use Google Workspace. Do we need a separate SSO product? Often not. Google Workspace includes SSO via SAML for third-party apps, strong MFA options (passkeys, Google Prompt, Titan Security Keys), and admin controls for device compliance. For Microsoft-heavy environments, Entra ID is the natural choice. Only invest in Okta or Authentik if your application stack is genuinely heterogeneous.
How do we handle break-glass access if MFA blocks everyone? Create two emergency access accounts (separate from daily accounts), protect them with FIDO2 hardware keys stored in a physical safe, and audit their usage monthly. Document the break-glass procedure and test it quarterly. This is a NIST and CIS requirement, not optional.
What about remote staff who lose their phone or YubiKey? Every user should have at least two registered authentication methods. Require backup methods (a second device or backup key) before enforcing MFA, otherwise a lost device becomes a full productivity outage. Your helpdesk procedure for identity recovery should be documented before you enforce MFA company-wide.
Conclusion
You don't need a six-month transformation programme to meaningfully improve your identity security posture. In five focused days, you can enforce phishing-resistant MFA, consolidate access through SSO, purge dormant accounts, implement zero trust conditional access, and roll out a password manager — for $5–$10 per user per month. Start with MFA enforcement today; it's the single highest-impact control in the ASD Essential Eight and it blocks the majority of attacks targeting Australian businesses.
Visit consult.lil.business for a free cybersecurity assessment — we'll review your current identity setup, identify your highest-risk gaps, and give you a prioritised remediation plan tailored to your environment.
References
- Australian Signals Directorate — Essential Eight Maturity Model
- NIST SP 800-63-3 — Digital Identity Guidelines
- CIS Controls v8 — Control 5: Account Management & Control 6: Access Control Management
- Australian Cyber Security Centre — Phishing-Resistant Multi-Factor Authentication Guidance
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- Some bad people use AI to pretend to be computer workers and get hired by companies
- They use robot voices, fake photos, and computer-generated resumes
- They don't actually do the work—they steal secrets
- Companies need new ways to check if people are who they say they are
What's Happening?
Imagine this: Someone sends a job application to a company. They have a nice photo, a good resume, and they do great in the interview. The company hires them.
But there's a problem: That person doesn't really exist.
A group of bad people used AI (artificial intelligence) to create a fake person, trick the company, and get hired. Then they use their job to steal secrets and money.
This is happening RIGHT NOW with computer programming jobs.
Who's Doing This?
Microsoft (a really big computer company) found out that some people from North Korea are doing this [1]. They use special names:
- Jasper Sleet
- Coral Sleet (used to be called Storm-1877)
They're like teams of tricksters using computers to fake being workers.
How Do They Trick Companies?
Step 1: Creating a Fake Person
They use AI to make everything up:
- Fake names - The computer suggests names that sound real
- Fake photos - Computer-generated pictures that look like real people
- Fake resumes - Computer-written work history that looks perfect for the job
- Fake emails - Email addresses that match the fake name
It's like playing dress-up, but with computers instead of clothes.
Step 2: Tricking the Interview
When it's time for a video call, they use special tricks:
- Robot voices - Computers that change their voice to sound like someone else
- Chat helper - AI that helps them answer questions during the interview
- Maybe pre-recorded videos - Sometimes they just play a video instead of talking live
The company thinks they're talking to a real person. But they're actually talking to a trickster using computer tools.
Step 3: Getting Hired (and Stealing)
Once they're "hired":
- They get paid salary money (which goes to the bad people)
- ️ They get access to company computers and secrets
- They steal important information
- They sell passwords or secrets to other bad people
They might do a little work—using AI to help them write computer code so they don't get caught. But the real goal is stealing, not working. [1]
Why Can't Companies Tell They're Fake?
Good question! Here's why regular background checks don't work:
- Background check passes - Fake people have no criminal history because they don't exist!
- References check - Fake references from computer-made people
- Skills test passes - AI helps them answer technical questions
- Looks normal on video - Computer voices and fake photos look real
It's like a really, really good costume.
Signs Someone Might Be Fake
Microsoft found some clues that can give away fake workers [1]:
Weird Things in Their Computer Code
- Using emojis as checkmarks () inside code
- Writing comments that sound like they're explaining themselves too much
- Using way too many complicated words for simple things
- Code that's more complicated than it needs to be
Weird Things About Their "Life"
- Hardly any photos or posts on social media before a certain date
- The same face shows up with slightly different names
- Jobs or schools that are hard to check really exist
- Generic stories that could be about anyone
Weird Things When Working
- Working at strange hours
- Asking for access to things they don't really need
- Moving files around for no clear reason
- Doing very little real work
How Companies Can Stay Safe
Good companies are fighting back with new rules:
Better Checking
- Multiple video calls - Not just one interview, but lots of talking
- Real work tests - Watch them actually do work, not just answer questions
- Meeting in person - Sometimes you just have to see someone face-to-face
- Checking their whole internet life - Seeing if they exist in more than one place online
Watching for Weird Stuff
- Strange computer access - Looking at files they shouldn't need
- Weird hours - Working at 3am when nobody else is awake
- Moving data around - Sending files to places they shouldn't go
Being Extra Careful
- Not giving too much power - Only giving access to what they really need
- Checking on contractors too - Not just full-time workers, but anyone with access
- Using computers to watch computers - AI helpers that look for fake workers
What Does This Mean for Us?
This might sound scary, but here's the good news:
Smart people are figuring this out - Companies like Microsoft are finding these tricks Better rules are being made - New ways to check if people are real Good AI is fighting bad AI - Using computer helpers to catch the tricksters
And for us regular people:
- Learn about internet safety - Knowing tricks helps you avoid them
- Build real relationships - Fake people can't do friendship or teamwork well
- Ask questions - If something seems weird, it's okay to ask why
FAQ for Curious Kids
They try! But the fake people are really good at tricking. It's like when someone wears a really good Halloween costume—you can't tell who's underneath until they take it off.
Yes! Microsoft found thousands of fake accounts and stopped them [1]. But the bad people keep trying new tricks.
Maybe. That's why companies are being extra careful now. It's like locking doors—not because you expect burglars, but because you want to be safe.
No, AI is just a tool. Think of it like a hammer. You can use a hammer to build a birdhouse OR break a window. AI can help bad people do bad things, but it also helps good people catch them!
TELL A GROWNUP. Don't try to figure it out yourself. If someone online seems weird or too good to be true, that's a grownup problem to solve.
Remember
The internet has good people and bad people, just like the real world. The difference is:
- Real world - You can see people's faces
- Online world - People can hide who they really are
That's why we need to be extra careful and use smart rules to stay safe. ️
Want to learn more about staying safe online? Ask your parents or teachers about internet safety, or check out resources from CISA—they're the experts on keeping computers safe!
Sources
Microsoft Security Blog. "AI as tradecraft: How threat actors operationalize AI." https://www.microsoft.com/en-us/security/blog/2026/03/06/ai-as-tradecraft-how-threat-actors-operationalize-ai/
Microsoft Security Blog. "Jasper Sleet: North Korean remote IT workers' evolving tactics to infiltrate organizations." https://www.microsoft.com/security/blog/2025/06/30/jasper-sleet-north-korean-remote-it-workers-evolving-tactics-to-infiltrate-organizations/
CISA. "Cybersecurity for Kids." https://www.cisa.gov/news-events/news/cisa-launches-cybersecurity-awareness-month-kids
FBI. "North Korean IT Workers Warning." https://www.fbi.gov/ic3/alertr/north-korean